Contactless spending nets £9.27 billion for UK economy

Almost three in five British consumers say that not having to hand over physical cash has led to them spending more at the counter, a new survey has revealed.

Conducted by credit checking service, ClearScore, the survey also found that 72 per cent of respondents think digital payment methods such as Apple Pay and contactless credit cards have encouraged them to make more impulse purchases.

According to the UK Cards Association, around £9.27 billion was spent on contactless cards between 1 January and 30 June – proof that the new trend is doing wonders for Britain’s economy.

However, ClearScore’s research has prompted a discussion about how consumers can better handle their money, and more importantly, save it.

Around 40 per cent of consumers said that the ease of digital payment methods has caused them to lose track of their spending, resulting in 24 per cent saying they have missed a bill, and 15 per cent having defaulted on a loan as a result of overspending.

Over half (57 per cent) said they have had to cut back on their monthly spending and 10 per cent resorted to using a “pay-day” lender.

Young people are among the biggest users of payment technology, the survey found, and are almost twice as likely to use mobile payments compared to those aged 34 years and older, and 20 per cent more likely to overspend.

Justin Basini, CEO of ClearScore, said: “Without the feeling of handing over cash – the clink of coins and the rustle of bank notes – money becomes even more abstract. We can easily lose track of how much we’re spending. It means it’s even more important than ever to stay on top of your financial information by checking your bank balance and debt levels regularly and nurturing your credit score.”